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FIDIC and The Standard Form Contracts PDF
FIDIC and The Standard Form Contracts PDF
FIDIC
Mohammed Said Fatha
Consultant Engineer
M C I Arb-London
Member of the Arabic translation Task Group
of FIDIC Contracts
Member of the Arab Center Of Arbitration Cairo.
1- What is FIDIC?
2-Types of standard
forms of contracts
Issued by FIDIC &
their main features.
HISTORY OF FIDIC
FEDERATION INTERNATIONALE DES
INGENIEURS-CONSEILS
Initial foundation in 1913 by French,
To be the
recognized
global voice for
the consulting
engineering
industry
To promote the
business interests of
suppliers of
technology-based
intellectual services for
the built and natural
environment
Founded in
1913 with
headquarters
in Geneva
Strategic Objectives
Quality Services
High Standards
Performance
Know how
Integrity
Best Practice
Selection by Ability
Principles
Sustainability
Capacity Building
Long-term perspective
Respect for the environment
Project-level focus
International co-operation
Training & transfer of know-how
Manuals
Annual conferences
Activities
Publications
Establish best practice procedures
Publish contracts for the
infrastructure industry
International agencies
Training
Liaison
Communication between
members,
committees & other
organizations
www.FIDIC.org
Distribute updated information
& services to members &
society
Training Modules
-
Each module
specifies:
- Content
- Resources
- Case studies
Training Modules
Works Contracts - Contracts Training Manual
- Professional Services
Agreements
- Practical Use of FIDIC contracts
Recommended for
- Claims and Dispute Resolution National Adjudicator
Lists
- Dispute Adjudication
- Contract Management
Each module specifies:
- Content
- Resources
- Case studies
FIDIC
Presidents List
Integrated Programme
Conferences
- Formal presentations
- Flexible programme
- Many topics
Seminars
- Formal presentations
- Flexible programme
- Several topics
Workshops
- Flexible programme
- One topic
- Break-out discussion
Courses
- Highly structured
- One topic
History of FIDIC
Conditions of Contract
Prior to 1957, there were no
internationally recognised contract
conditions for construction work.
1957 first edition of Conditions of
Contract for Works of Civil Engineering
Construction known as the Red Book
was published.
Hereafter are
some Standard
form of contracts
issued By FIDIC.
Consultant Selection
Guidelines.
The purpose of these
guidelines is:
1. To present the commonly
used methods of consultant
selection.
2. To explain the respective
procedures and to combine
them all in one compact
document.
3. As well as to emphasize and
explain FIDIC's policies on the
subject of selection.
Representative Agreement.
Sub-consultancy Agreement .
Harmonisation
Liability to be limited
Insurance
Life-cycle costs to be considered
Monitoring outcomes
Design for safety
Updated 2009
This is a guidelines
Brochure for the
Quality Based
Selection (QBS).
Project Sustainability
Management guidelines .
This guidelines aim to commit to the
( condition of
contract for
electrical and
mechanical works).
Design-Build and
Turnkey
(Orange Book) Guide .
Insurance of large
civil engineering projects.
The FIDIC Committee which reported in 1981 this
paper was appointed to discuss dissatisfaction with the
gaps in insurance cover for large scale engineering
projects. Particular attention was focused on the
Insurance of large
civil engineering projects.
Design-Build .
which are recommended for the
provision of electrical and/or
mechanical plant , and for the design
and execution of building or
engineering works.
Under the usual arrangements for this
type of contract, the Contractor
designs and provides, in accordance
with the Employers requirements ,
plant and/or other works; which may
include any combination of civil,
mechanical , electrical and/or
construction works.
Turnkey Projects .
Which are recommended where one
entity takes total responsibility for the
design and execution of an
engineering project.
Under the usual arrangements for this
type of contract , the entity carries out
all the Engineering, Procurement and
Construction: providing a fullyequipped facility , ready for operation
(at the "turn of the key").
This type of contract is usually
negotiated between the parties.
DBO Contract
FIDIC has chosen to adopt the green-field
Design-Build-Operate scenario, with a 20- year
operation period, and has opted for a single
contract awarded to a single contracting entity
(which will almost certainly be a consortium or
joint venture) to optimise the coordination of
innovation, quality and performance, rather than
award separate contracts for design-build and
for operation.
The contractor has no responsibility for either
financing the project or for its ultimate
commercial success.
This is the basis upon which this document has
been prepared.
The document, as written, is not suitable for
contracts which are not based on the traditional
Design-Build-Operate sequence, or where the
Operation Period differs significantly from the
20 years adopted.
CONDITIONS OF CONTRACT
Fdration Internationale des Ingnieurs-Conseils
published 1999
Guide
published
2001
CONTRACT CONTINUITY
Employer /
consultant
design
Contractor
design
Various
formats
no
EMPLOYER
DESIGN
yes
no
yes
no
CONTRACTOR DESIGN
Plant and/or high
unforeseen risks
Maintenance
1. Agreement.
2. General Conditions.
3. Rules for Adjudication .
4. and Notes for Guidance.
It has been issued With collaboration of The
International Association of Dredging Companies
(IADC), and for dredging and reclamation work.
The aim has been to produce a straightforward
document which includes all essential commercial
provisions, and which may be used for all types of
dredging and reclamation work and ancillary
construction with a variety of administrative
arrangements.
Under the usual arrangements for this type of contract,
the Contractor constructs the Works in accordance with
design provided by the Employer or by his Engineer.
However, this form may also be suitable for contracts
that include, or wholly comprise, contractor-designed
works. In addition, the Employer has a choice of
valuation methods,
Quality of Construction.
A best-practice approach to
Contents:
1. Introduction
2. FIDIC Quality of Construction
Survey
3. Policy and strategy
4. Approach to Quality
5. Recommended actions
6. Appendices
Work in Progress
Business Practice
-
FIDIC Contracts
Engineer
Employer
Contractor
Powers of Engineer
Contractual Relations
61
FIDIC Contracts
62
FIDIC Contracts
63
FIDIC Contracts
Understanding FIDIC
Way
of
working
Legal background
Common law
Implied Definitions
Reasonable/Shall
Definitions
Defects Notification
Period
Context
To give notice
Identify
term
Check
Legal
background
Check
definitions
Liquidated damages
v. penalties
Substantial completion
v. acceptation
Check
context
64
FIDIC Contracts
White Book
Contract Administration
Consultant
shall perform
Services
Contract
administration
Instruction
Determination
Certification
Valuation
65
FIDIC Contracts
White Book
Contract Administration
Contract
authorises
Consultant/Engineer
to act
Contract
administration
Instruction
Determination
Certification
Valuation
66
FIDIC Contracts
Risk of
interpretation
To the extent
which was
practicable
Procurement
law
Legal
risk
allocation
Sub-Clause
4.10
Posession?
Relevance?
Good faith
No duty to
make survey
67
Instruction
Request
Variation
Presumption
Amendment
EOT
Legal Risk
Damages
Rescission
Adjustment
Contractual Risk
EOT
Cost
Profit
68
Claims
Claim Management
Advice
Supervision
Input
Legal Advice
Application for
Statement
Action
Calculation
Representative
Engineering
Risk Assesment
Management
69
EOT
Delay caused
by Employer
Employers
Risk
Cost
Cost caused
by Employer
Employers
Risk
Profit
Breach of
Contract
Employers
Risk
Legal
Claims
EOT
Delay caused
by Employer
Employers
Risk
Cost
Cost caused
by Employer
Employers
Risk
Profit
Breach of
Contract
Employers
Risk
70
Which kind
of event?
List of actions to
be established
Determination of a claim
To approve, certify
Instruction
To examine, to inspect, to
test, to measure
Request of proposal
Action of the Engineer
Finish
71
List of actions to
be established
Approval
Check
Certificate
Consent
Determination
Disapproval
Examination
Inspection
Instruction
Notice
Proposal
Request
Suspension
Test
Valuation
Contract Interpretation
Payment Certification
Cl. 14
Taking-Over
Cl. 10
Variations
Cl. 13
Cost Management
White Book
Cl. 13.2
Time Management
Claim Determination
72
Claim
Notice
Claim
Procedure
Amount due
Balance
Claim
Notice
Claim
Procedure
Amount due
Balance
Retention of
uncertified
amounts
excluded
Payment
Payment
Certificate
Employer
2.5
73
Contractor
21 days
Commencement Programme
Date
7 days
Letter of
Acceptance
or
Contract
Agreement
Performance
Security
28 days
FIDIC CONTRACTS
CONSTRUCTION
EPC/TURNKEY PROJECTS
ACCEPTED
SUPPORTED
EFFECTIVE
FIDIC GUIDES
The FIDIC Contracts Guide.
Buy originals.
PRINCIPLES OF PROCUREMENT
Effectiveness.
Economy.
Efficiency.
Accountability.
Transparency / confidentiality.
Strong competition.
Publicity, wide participation.
Fair and equal conditions.
Standard procedures.
Standard documentation.
PROCUREMENT CATEGORIES
Goods.
Works.
Consultant services.
Other services.
TENDERING PROCEDURES
Development bank / public procurement procedures.
Open tendering / International Competitive Bidding.
Local tendering / National Competitive Bidding.
Restricted tendering / Limited Bidding.
Shopping.
Single source.
SELECTION PROCEDURES/CRITERIA
Criteria defined and published in
advance.
PROCUREMENT STEPS.
Preparation.
Publication.
Pre-qualification / short-listing.
Invitation.
(Submission).
Evaluation.
Award, contracting.
Supervision, contract administration.
Lessons learned.
PREPARATION OF PROCUREMENT
CONTRACT ADMINISTRATION
Supervision.
Enforcement.
Quality and quantity.
Invoice verification.
Payments.
Extensions, variation orders, amendments.
Termination.
Disputes and their resolution.
RISKS IN PROCUREMENT
Wrong goods, works, services.
Bad value for money.
Corruption.
92
Tender Stage
Base Date
Tender Period
Floating
the Tender
28d
Tender Evaluation
Tender
Submission
Project Starting
Performance
Security 4.2
Insurance
28d
42d Max.
Issuance of
LOA
Commencement
Date 8.1
Project Execution
Time for Completion
Extra
Cost
95
Interim Payments
Engineer to
Certify
21d notice
<56d
<28d
Payment
Application
Employer to
pay
42d
Contractor to
suspend or reduce
the rate of progress
16.1
Contract
Termination
after 14 days
notice 16.2
Engineer to
Certify
TOC
S@C
<28d
Employer to
pay
42d
Contractor to
suspend or reduce
the rate of progress
16.1
Contract
Termination
after 14 days
notice 16.2
Employer to
pay
Final Payment
Engineer to
Contractor to Certify FC
submit FS
Engineer Verify,
Contractor support
<56d
<28d
<56d
Agree
<56d
Disagree
<28d
Dispute
20.4
PC
Draft
FS
Engineer to
Certify IPC
Employer to
pay
Claim Procedure
No EoT
No additional payment
Notification
of Claim
Event
Engineer to
respond
<42d
Approve
<42d
Disapprove
<28d
Further
particulars
Claim
Particulars
Claim
Principals
Project Closure
Test on
Completion
Performance
Certificate
Remedying of defects
DNP
TOC
Return of the
Performance
Certificate
<21d
Clause 20.4
DAB Procedure
Decision
Clause 20.4
Amicable Settlement
Clause 20.5
Arbitration
101
28 days
Notice of intention to
refer a dispute to DAB
Appointment of DAB
Reference of the
dispute in writing to DAB
Submission of
additional information
Access to
the site, etc.
Experts
Hearing
See Procedural
Rules
Cl. 20.4
See Procedural
Rules
112 days
84 days
102
Dispute
Referral to DAB
Decision by DAB
Binding
No
Dissatisfaction
Endeavour to
reach Agreement
Failure to comply
Arbitration
Enforcement
Breach of contract
103
74
Event
Dispute
<28d
No EoT
No additional payment
N Notification of Y
Claim
<42d
DAB Decision
20.4
N
Notification
20.4
<28d
Arbitration
20.6
DAB
Amicable
Settlement 20.5
<84d
Parties
Accepted
Succeeded
56d
Y
N
Claim
Particulars
<42d
Engineer to
respond
Parties
Accepted
Y
Dispute
Resolved
106
Engineer
Permanent
DAB
Determination
Rejection
Arbitration
Decision
Nomination
if necessary
DAB
Stage 2
DAB Decision
Stage 3
Procdure au fond
Red Book
General Conditions, Cl. 20.6:
The arbitrator(s) shall have full power to open up, review and revise any certificate,
determination, instruction, opinion or valuation of the Engineer, and any decision of the
DAB, relevant to the dispute.
Neither Party shal be limited in the proceedings to the evidence or arguments
previously put before the DAB
107
Thanks